SEC Reopens Comment Period on Application of Advisor
Act

August 20, 2004 (PLANSPONSOR.com) - The Securities
and Exchange Commission (SEC) reopened the comment period
yesterday on a 1999 rule proposal that focuses on the
application of the Adviser Act of 1940.

The proposed rule on the application of the Act has
to do with broker-dealers that offer certain full-service
brokerage services for an asset-based fee instead of
traditional commissions. Brokers who garner compensation
through asset-based fees may be the subject of regulation
under the Act. The rule proposed in 1999 would make the
nature of the services provided – rather than the form of
compensation – the principal factor in determining
whether the Act applies.

The comment period was reopened after a recent
surge in additional comments. The new deadline for
comments is now September 15
th
, with the SEC hoping to make a final ruling by the end
of the calendar year, according to an SEC press
release.